By Alan Bush | Senior Financial Economist at ADMIS
The Dow Jones had its largest up day since 1933. However, just a few days ago it suffered one of its worst daily declines.
There were follow-through gains in the overnight trade on news that the White House and Senate leaders reached an agreement on a $2 trillion stimulus bill, which is the largest in U.S. history.
The Senate is expected to vote on the bill later today before it goes to the House and then to President Trump.
U.S. durable goods orders in February were up 1.2% when a decline of 0.9% was expected.
It is encouraging that stock index futures are able to hold on to gains on the recent Federal Reserve stimulus plans. In recent days prior, bullish news lasted for only a short time.
The U.S. dollar is lower again, which is an indication that global liquidity needs are being met.
The euro currency is higher in spite of news that the Ifo institute’s business sentiment index fell to it lowest level since 2009.
Flight to quality longs are being liquidated at the long end of the curve.
The Treasury will sell five year Treasury notes today.
The yield curve is becoming more normal, which suggests economic recovery late this year and into 2021.
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Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The risk of loss in trading futures and options can be substantial. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff. Research analyst does not currently maintain positions in the commodities specified within this report. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright © ADM Investor Services, Inc.
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